Learning aim
By the end of the 6-week unit, pupils will have built core KS3 money-education competencies through a coherent, scaffolded sequence covering the six topics below.
Unit overview
This is a complete 6-week unit covering core KS3 money education objectives. Each lesson is self-contained with its own resources, differentiation, and assessment — but designed to build cumulatively over the half-term.
National Curriculum links
- PSHE Association KS3: sequence of objectives on financial literacy, money management, and economic citizenship
- Maths KS3: percentage calculations, ratios, financial arithmetic
- Citizenship KS3: economic role of citizens, the welfare state, tax and public services
6-week breakdown
LESSON
First bank accounts at 11-15
Objective: Identify what an 11-15-year-old can and can't do with a bank account; explain account types available.
Activity: Compare three UK youth-account features (HSBC, Nationwide, Santander) on a worksheet.
Assessment: Match three account features to the type that has them.
LESSON
Compound interest in action
Objective: Calculate compound interest at different rates; recognise the "miracle of compounding".
Activity: Spreadsheet activity: £100 at 5% over 10/20/40 years.
Assessment: Calculate compound value for given principal + rate + time.
LESSON
What is income tax
Objective: Define income tax; calculate it for a £20-30k salary; explain band system.
Activity: Class calculation activity through three salary scenarios.
Assessment: Calculate income tax for two given salaries.
LESSON
National Insurance explained
Objective: Explain what NI is, what it pays for, and how it differs from income tax.
Activity: NI vs Income Tax compare-and-contrast worksheet.
Assessment: List 3 things NI pays for; state the 2026/27 NI rates.
LESSON
Tax codes and emergency tax
Objective: Decode 1257L, BR, 0T, W1/M1 codes; recognise the most common starter codes.
Activity: Tax code reading exercise with sample payslips.
Assessment: Decode 4 different tax codes and state the implication of each.
LESSON
Reading your first payslip
Objective: Identify each line of a typical UK payslip; calculate net pay from gross.
Activity: Full payslip-reading exercise with worked example.
Assessment: Read and interpret a sample payslip; calculate net pay.
End-of-unit assessment
Each lesson includes its own assessment criteria — typically a short task or worksheet at the end of class. We recommend a cumulative end-of-unit assessment quiz: see the matching KS3 unit quiz (where available).
Marking guidance and exemplar answers are provided on each individual lesson page.
Preparation
- Print all 6 lesson plans for the unit before week 1
- Pre-assemble homework packs for each week
- Bookmark UK Tax Drag's relevant content pages for teacher reference
- For KS3 levels: review the assessment criteria with your faculty to align with school-wide marking standards
Free to use, share, and adapt
This unit is free for all UK teachers to use, share, and adapt for non-commercial educational use. Print, distribute, and modify as needed. We ask only that any reproduction credits UK Tax Drag Kids and links back to kids.uktaxdrag.co.uk.
Homework pack
Four activities to consolidate UK income tax mechanics. ~30 minutes.
Band calculation
What pupils do: For each gross salary, calculate the UK income tax (England/Wales/NI 2026/27 rates): (a) £15,000, (b) £30,000, (c) £55,000, (d) £85,000. Show the band split for each.
Expected output: 4 calculations with band-by-band working.
Marking guidance: 2 marks per accurate total (8 marks). Bonus 4 marks for correct band splits.
Personal Allowance research
What pupils do: What is the Personal Allowance? Why does it exist? Who loses it (the taper rule)?
Expected output: A 3-question short-answer response.
Marking guidance: 2 marks per accurate answer. 6 marks total.
Public spending
What pupils do: Find 5 different things UK income tax pays for. Order them by approximate share of government spending (biggest first).
Expected output: A ranked list of 5 spending categories.
Marking guidance: 1 mark per category, 1 mark per correct relative ranking. 8 marks total (e.g. NHS, pensions, education, defence, welfare).
Extension (optional)
What pupils do: Compare England, Scotland, and Wales income tax for someone earning £50,000. Which nation pays the most? Why?
Expected output: A 3-nation comparison table plus 2-sentence explanation.
Marking guidance: Up to 6 marks for accurate research and conclusion (Scotland pays more above ~£28k).
Family discussion prompt (safeguarding-aware)
Ask a working adult: "Name three things you think our tax money pays for." Compare their answers to what you learned in class.
Classroom safeguarding
Related lesson plans
- Understanding your first payslip (KS3 · Year 7 / Year 8)
- National Insurance — what it is, who pays it (KS3 · Year 8)
- Tax codes and emergency tax — decoding the letters and numbers (KS3 · Year 8 / Year 9)
- All lesson plans (KS1 · KS2 · KS3 · KS4) →